Geography

posted by .

If a country is in dire need, as in Africa for example, why can't that country's currency production be increased to pay for such things? Who decides how much the Canadian mint makes, and why can it not make money to meet provincial needs?


Unrestricted printing money without some form of bond issuance (borrowing) by the government is a recipe for hyperinflation. That is what is happening in Zimbabwe today, and what happened to Germany during the Weimar Republic. The national currency becomes worthless.

The canadaian Government, like the US, cannot just "make" money without issuing some debt instruments or retiring old currecny from circulation.

One legitimate way to increase the amount of demand deposits ("cash"" in circulation is to lower interest rates and also flower the fraction that banks have to hold in Rederal Reserve accounts. Then it is the banks that increase the money supply, by opening checking accounts and paying checks written for borrowers.





First, Africa is a continent, made up of many different countries with different currencies.

It sounds like you believe that just printing or coining more money will solve a country's financial problems. It does not work that way. However, since I am not an economist, I cannot explain why.

As far as Canada is concerned, especially since this is not my area of expertise, I searched Google under the key words "Canada mint production" and "'Canadian mint' production" to get these possible sources:

(Broken Link Removed)
(Broken Link Removed)
http://en.wikipedia.org/wiki/Royal_Canadian_Mint
http://en.wikipedia.org/wiki/Canadian_coinage

I hope this helps. Thanks for asking.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economics

    I have a couple of questions, thanks so much. If a country were to increase the value of their currency, how could that improve their economy?
  2. Economics

    Based on the total world trade share with the given information, find the nations deficit or surplus. country A exports to country B: $35 country A exports to country C: $25 country B exports to country A: $30 country B exports to …
  3. business

    Here is a question on free trade. Country X and Country Z have a free trade agreement. If Country X buys trucks from Country Y and sells the trucks to a car dealer in Country Z, does the buyer need to pay duty on trucks. Why or why …
  4. Geography

    I need help with this: "This is a nation in South Asia. One of South Asia's three major rivers is in this country. The country has two climate regions, arid and semi-arid and the dominant religion in this country is Islam." Which country …
  5. geography

    What makes Thailand unique among the countries of Southeast Asia?
  6. geography

    What island country of southern africa has plants and wildlife found in no other country?
  7. Algebra

    What would the currency be from Afghanistan currency if sunglass cost $169.40 U.S. dollar amount, so my question would be how do I solve the equation if S=C(1+r/100)^5 to find the inflated cost S, in 5 years, where C is the current …
  8. physics homework

    An ocean liner going from country a to country b stops for a few days in country. You are on board and wish to estimate the time it will take you to get to country b. it is 3700 km from country a to country c and 6200 km from country …
  9. English

    She wishes to visit the country whose scenery is beautiful. (In this sentence, what is 'the country'?
  10. business

    Suppose you are a financial manager stationed in a foreign country and your boss at headquarters in New York asks you to make a prediction about the future exchange rates in the country you are currently in. You see that the economy …

More Similar Questions